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Gold futures prices soared Friday after it was reported that President Donald Trump recently had placed a tariff on gold bars from Switzerland.
Gold futures prices in New York jumped to record levels early Friday after it was reported that the U.S. had placed tariffs on gold bars from Switzerland.
Financial Times reported Thursday that the levies had been placed on the most common weight of gold bullion from Switzerland as of early April.
Gold mining stocks closed higher Friday, while gold futures pared earlier gains on news of the Trump administration’s plans to clarify that no levies would be imposed on gold.
The gold market was whiplashed by on-and-possibly-off again tariffs imposed on Swiss bullion.
The Financial Times first reported on Thursday that the U.S. had placed levies on gold bars. On Friday morning, the U.S. Customs and Border Protection service’s website showed a letter ruling from the service dated July 31, saying cast gold 1-kilogram bullion and 100-troy-ounce bullion bars from Switzerland should be placed under customs classifications that are subject to tariffs that were effective as of April 5.
Gold futures prices in New York rose to record levels, briefly hitting a high of $3,500 per troy ounce on Friday, and were trading at a premium over benchmark spot prices in London. That futures prices spiked over spot would make sense—they typically trade at a premium, because there is no carry cost embedded in spot. Buyers of gold futures, however, are locking in a price for delivery at a future date, which, for gold bars, would include relevant expenses like the cost of storage.
Gold futures pared gains to around $3,450 per troy ounce, pushing its premium to spot down to normalized levels, following a Bloomberg report that the Trump administration would in the “near-future” issue an executive order clarifying that there would be no duties imposed on gold bars from Switzerland.
Gold mining stocks, including Freeport-McMoRan (FCX), Royal Gold (RGLD), and US Gold Corp. (USAU), closed higher on Friday, outperforming the broad market.
Trump announced levies of 31% for Switzerland in April, but raised the rate to 39% last week. Swiss President Karin Keller-Sutter reportedly left Washington, D.C., without a deal in hand earlier this week, according to Reuters.
One-kilo bars are the most commonly traded size of gold bars on the world’s largest gold futures market, COMEX.
If tariffs on gold are imposed, Switzerland would be in a tight spot. According to statistics for 2024 compiled by Trading Economics based on the United Nations international trade database, pearls, precious stones, metals, and coins are the country’s second-highest imports to the U.S. by value, behind only pharmaceuticals.
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